OUR WORK
25 YEARS OF PARTNERSHIP TAX INNOVATION
For more than 25 years, our solutions have served the largest public accounting firms and US partnerships.
2026
TIERS AI next-generation solution.
2024
Sale of Document Intelligence system and related inventions to Big 4 firm. Widespread rollout in year one.
2020
Sale of cloud-first partnership tax compliance system to an international firm. Nine-figure ROI in year one.
2018
Experimental machine learning system to automate the extraction of structured data from K-1s and footnotes eliminated 30,000 labor hours in the first busy season of use.
2017
Development of a deep partnership modeling platform for Big 4 National Office M&A practice. Used to model and propose Up-C conversions of the largest publicly traded US PE entities.
2013
Sale of breakthrough Sub K tax allocation engine and related inventions to Big 4 firm. Over next three years, developed it into the market-leading platform.
2011
Developed in-memory analysis and ubiquitous parallel processing techniques
2001
Pioneered early software solutions for partnership tax, including 704(b), 704(c), and 752 allocation logic.
2024
The Development of Partnership Document Intelligence
Beginning in 2021, using emerging AI and ML capabilities, we developed a new system for comprehension of K-1s, K-3s, footnotes, and other associated tax documents.
In 2024 a Big 4 accounting firm entered an agreement to purchase this system and related inventions.
Integrating multiple AI strategies, this system understands and extracts data from complex documents with unprecedented speed and accuracy.
Document Intelligence comprehends hundreds of semantic concepts and data types, including but not limited to:
The face of the K-1, with self-programming to account for document template variations
Overflow statements and other form face-related detail footnotes
Other critical footnotes including DRD, ECI, UBTI, FDAP, PFIC, Installment Sales, Passive Activity, QBI / 199A, 926, 8621, 8865, and 8886
State-source income matrices
State K-1s including complex forms such as the CA, NY, and PA K-1s
The highly complex K-3 and overflow statements
2020
CLOUD-FIRST Partnership Tax Compliance System
In 2018, we began development of a new partnership tax compliance system using cloud-first strategies and modern system architecture.
In 2020, it was acquired by an international accounting firm.
By the end of the first year, the firm had enjoyed a nine-figure return on investment.
Key features:
GAAP to Tax adjustments, allocations, and tiering for partnerships and tiered organizational structures of any size and complexity
Primary calculation pipeline for federal, state, and international tax reporting
Secondary calculation pipelines for complex Section 704(c) allocations found in real estate partnerships and hedge funds
Rapid calculation turnaround for even the largest partnership structures
Real-time, in-memory, self-service analytics and reporting functions
Inputs and outputs exportable in XLSX and compressed CSV formats
Simple integration with Excel, Alteryx, Power BI, and other end-user tools
Direct generation of high-quality K-1s, footnotes, K-3s, and K-2
Systems integration with widely used tax return filing systems such as GoSystem and CCH
Append-only data model with full revision history, tracing capabilities, and the ability to reverse all data changes
Instantaneous copying of datasets, with copies made from any point in their revision history
Configurable data ingestion and transformation functions for client data sources such as trial balances, balance sheets, and income statements
Automated Extraction of Structured Data from Tax Documents
From 2018 to 2020, we developed several machine learning and heuristic AI-based applications that extract structured data from tax forms and complex footnotes.
These projects succeeded before the advent of modern Large Language Models and Generative AI.
A difficult area in which we made significant progress was the classification and extraction of data from complex footnotes that trigger reporting requirements (e.g., forms 926, 8865, 8886, and 8621).
By 2020, these systems were trained to recognize and extract data from 44 distinct classes of footnote.
The core libraries united open-source software, closed-source commercial software, and custom developed software to produce a unified and royalty-free system for extraction of data from tax documents.
Examples of deployed applications include:
A fund-of-funds focused system for ingestion and aggregation of K-1s, overflow schedules, and footnotes. Source documents of varied quality, ranging from high quality searchable PDFs to low quality scanned images. Deployed for use both by line of business staff and a global delivery center. Eliminated 30,000 labor hours in the first year of use.
A private-equity focused system to ingest, review, and enhance K-1s in scenarios where the funds receive K-1s from hundreds or thousands of underlying entities.
A system for ingestion and general-purpose query of field data from over 2,000 form types (inclusive of variations).
2018
2017
PARTNERSHIP MODELING PLATFORM
Three-year-long development of a deeply technical partnership transaction modeling platform in collaboration with a Big 4 National Office M&A practice.
In 2019, the M&A team modeled and proposed the Up-C conversion of a prominent publicly traded entity.
Upon conversion, that entity enjoyed a significant increase in market value. Other partnerships with similar structures followed.
Core functions include:
Tracking over time of partners’ varying 704(b) interests, Section 704(c) differences, and capital accounts. Automation of internal accounting relating to transfers of interest and redemptions.
Tracking of Section 704(b) book basis and tax basis of partnership property, including depreciable and amortizable property.
Section 704(b) revaluations of partnership property.
Section 704(c) depreciation and gain/loss allocations under traditional, remedial, and curative methods. Mixed method approaches where 704(c) methods differ by revaluation layer.
Section 752 debt analysis and allocations allowing for recollateralization and other changes in debt fact patterns.
Calculation of hypothetical liquidations including detailed gain/loss calculations at the asset, layer, and investor level.
Section 751(a) gain recharacterization analysis.
Section 751(b) gain analysis on distributions that result in deemed sales or exchanges.
Section 731 gain analysis on distributions.
Section 732 gain analysis on distributions of partnership property.
Section 743(b) adjustment calculations, allocation to property, and ongoing recovery, including both two-way and one-way adjustments.
Section 734(b) adjustment calculations, allocation to property, and ongoing recovery.
Allocation of miscellaneous other 704(b) book and tax items to partners.
Sub K Partnership TIERING AND ALLOCATION ENGINE
In 2011, we began experimenting with novel software designs incorporating in-memory analysis and ubiquitous parallel processing.
This work yielded a new, high-performance system of algorithms to compute US partnership tax allocations pursuant to IRC Subchapter K.
In 2013, a Big 4 accounting firm purchased this partnership allocation engine and portfolio of related inventions.
Our team was then engaged in a successful multi-year project that resulted in a comprehensive, “GAAP to Tax” partnership tax compliance system.
Our contributions include:
All federal and state tax calculation logic
Design of the system’s tax-domain conceptual model and its overall data model
All system middleware connecting the calculation logic and cloud computing processing and data infrastructure
End-user workflow for book-to-tax and other key tax processes
Federal and state form production functions
Footnote production functions, including free-form HTML text formatting and dynamic compilation of user-specified functions
In 2026, this system remains the core of the firm’s partnership tax compliance practice.
2011
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